Hotel investments: Owner-operators losing significance

10/07/2019

The significance of owner-operators in the German hotel investment market is declining with the institutionalization of that asset class. According to BNP Paribas Real Estate, during the first half of the year the corporates, which are mostly owner operators, only account for 6 % of the hotel transaction volume, while Spezialfonds dominate with a nearly 31 % share of revenue.  “Hotel properties have come out of their niche position,” says Managing Director and Co-Head Investment Nico Keller. This development is accompanied by an increasingly severe lack of product, which the brokers believe has caused the Germany-wide investment volume to drop 14 % to €1.6bn. JLL even calculated a minus of 20 % to €1.47bn. “Anyone who wants to invest in hotels is forced to reach out to secondary and tertiary markets – and investors are doing so more and more,” says CBRE’s Head of hotel business Olivia Kaussen. Colliers International determined another decline of top yields for Frankfurt and Hamburg. The most expensive Top 5 location is Munich (3.7 %); the least expensive is Berlin (4.5 %).


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